The electric vehicles will have lower margins at least in the beginning of their life cycle "even though we are confident we can close the gap", CFO Frank Lindenberg was quoted as saying. This 'Fit for Leadership 4.0 plan' involves the company's target savings of over €4 billion Euros which is equivalent to $4.8 billion USD.

However, Mercedes executives said the company may not meet its midterm profit margin as a result. Deutsche Bank AG reiterated a buy rating on shares of Daimler AG in a report on Wednesday, December 14th. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and nine have assigned a buy rating to the company's stock. The stock has an average rating of Hold and an average price target of €72.50 ($86.31).

Shares of Daimler AG (ETR:DAI) opened at 67.422 on Monday. The company has a market cap of €69.46 billion and a PE ratio of 7.024. The firm has a 50 day moving average price of €61.20 and a 200 day moving average price of €65.74.

Following China's announcement of phasing out fossil fuel vehicles, Mercedes-Benz is following suit by announcing that they are electrifying their entire lineup by 2022.

Following recent announcements by Volvo, Jaguar Land Rover, and BMW, the German automaker said it will offer a hybrid or all-electric version of virtually everything it makes within the next few years. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, andDaimler Financial Services segments.